Jindal Steel (JINDALST IN) – Q4FY26 Result Update – Strong Q4; ramp-up & higher prices to drive growth – ACCUMULATE
Published on 02 May 2026
Jindal Steel (JINDALST) reported strong operating performance in Q4FY26, driven by a sharp recovery in steel prices and robust volume growth led by ramp-up at Angul. Volumes grew ~23% YoY, while realizations too improved (NSR up ~7% QoQ) supported by higher flats and longs prices during the quarter. This led to a sequential improvement in profitability, with EBITDA/t at INR10,103 (INR11,218 incl. fx gains), despite some pressure from higher coking coal costs. Start-up costs were ~INR1.25bn in Q4 (vs ~INR15bn in Q3) and are now fully behind. Management highlighted that ramp-up of newly commissioned capacities is progressing well, with volumes expected to scale up further, while realizations remain supportive with current prices higher than Q4 levels, although raw material costs are expected to remain volatile. We expect EBITDA CAGR of over 40% over low base of FY26. At CMP, the stock is trading at 10.4x/7x EV of FY27/28E EBITDA. Maintain ‘Accumulate’ with revised TP of Rs1,289 (earlier Rs1,265) valuing at same 7.5x EV of Mar’28E EBITDA.
